Biles: Integration has been smooth
Gordon Dadds saw its share price rebound for its lowest ever point yesterday after announcing that it has reached agreement to work with five of the law firms that used to be part of the Ince & Co international network
Adding the firms in Hong Kong, Singapore, Dubai, Greece and Germany collectively increases the listed business’s revenues by £23m to £100m.
As a result, Ince Gordon Dadds – following the acquisition in January [1] – will have 12 offices in seven countries, and 450 fee-earners. French affiliates in Le Havre, Marseille, Monaco and Paris are not part of the new arrangements.
The group share price fell to 120p at the start of this week, but reached 135p yesterday on the back of the news.
It had climbed to a high of 189p in January before an unexpected share placing raised £11.5m [2] but sent the share price crashing.
The overseas firms will operate closely with Ince Gordon Dadds under new commercial arrangements and a new governance structure.
In a statement, the group told investors: “The members of the partnerships will commit to a common structure governing the membership, business, conduct and management of the international firms and the rights, duties and obligations of their members.
“The structure will be controlled through membership of a new non-trading international governance entity.”
The international firms will continue to be separate legal entities owned by the local partners, operating under the Ince name. No consideration has been paid for the new arrangements.
Chief executive Adrian Biles said: “The Ince name is a leading global brand and I am delighted that the former Ince & Co international partnerships will continue to operate as one, as members of the Ince Gordon Dadds group.
“The integration of Ince’s London office with Gordon Dadds, to form Ince Gordon Dadds, has progressed smoothly and the commercial benefits of the larger operation are beginning to be demonstrated…
“I look forward to continuing this trend of growth and expansion, as we continue to offer clients an impressive breadth and depth of service both by practice area and geography.”
Meanwhile, fellow listed law firm Knights Professional Services last week announced that it has agreed a new extended revolving credit facility with Allied Irish Bank (GB).
The facility provides total committed funding of £27m until June 2023. It replaces the group’s existing £18m facility with AIB and is on improved terms.
Knights chief executive David Beech said the increased facility provided “increased flexibility and additional headroom in our facility to execute our strategy”.
He explained: “We look forward to continuing to develop the business both organically and through the selective acquisition of high-calibre firms which enhance our expertise and geographical presence outside London and drive shareholder value.”
Knights’ share price closed at 280p yesterday, down from its all-time high of 311p last month but still way ahead of the 175p it closed 2018 on.